Aberdeen Standard Investments (ASI) has announced the launch of the European Long Income Real Estate Fund. The Fund’s first close was held on 31 October 2019, with over €100m of equity committed from six institutional investors located in six different countries. Structured as an open-ended vehicle, the Fund is expected to grow considerably in size over time.
With interest rates and bond yields at historic lows, the Fund will appeal to institutional investors looking for alternative sources of income that tap into the so-called ‘illiquidity premium’. The Fund will follow a similar investment strategy to the Aberdeen Standard Long Lease Property Fund, which was launched for the UK market 16 years ago and has assets under management in excess of £2.5bn.
The Fund aims to provide long-term, reliable, inflation-protected income streams with reduced volatility in capital values compared with a more conventional real estate fund. In our opinion this type of real estate has particularly defensive characteristics. The Fund will invest in assets with long leases and long-term tenants. Tenant credit underwriting is a crucial part of the investment process, and the team will be able to draw on the knowledge and experience ASI has in European equities and fixed income. The objective is to build a diversified portfolio of direct real estate assets located in key Western European markets (with a focus on Germany, France, Benelux and the Nordics). The Fund will not invest in the UK market.
The Fund will be managed by Troels Andersen, based in Denmark, supported by deputy fund managers Sabine Dost and Eeva Saravuo, located in Germany and Finland respectively. The fund management team will have at its disposal the resource and expertise of the wider ASI European real estate team, which has 11 offices across ten European countries.
Andy Creighton, Head of Continental European Real Estate, said:
“Long lease real estate has established itself as an important part of many institutional investors’ portfolios in the UK and we’re pleased to launch this Fund for institutions in continental Europe. Our knowledge and experience of long income real estate, along with the depth and breadth of our European real estate team, makes us ideally placed to manage this Fund and to provide more investors with access to a potential source of long-term, reliable income.”
0131 372 1821
Notes to editors
For Professional Investors only
The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested. Past performance is not a guide to future results. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. We recommend that you seek financial advice prior to making an investment decision.
The details contained here are for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any investments or funds and does not constitute investment research, investment recommendation or investment advice in any jurisdiction. Any research or analysis used to derive, or in relation to, the above information has been procured by us for our own use, without taking into account the investment objectives, financial situation or particular needs of any specific investor, and may have been acted on for own purpose. No warranty is given as to the accuracy, adequacy or completeness of the information contained in this communication and no liability for errors or omissions in such information. Readers must make assessments to the relevance, accuracy and adequacies of the information contained in this communication and make independent investigations, as they may consider necessary or appropriate for the purpose of such assessments. Any opinion or estimate contained in this communication, are made on a general basis. No information contained herein constitutes investment, tax, legal or any other advice, or an invitation to apply for securities in any jurisdiction where such an offer or invitation is unlawful, or in which the person making such an offer is not qualified to do so.
United Kingdom issued by Aberdeen Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1XL. Registered in Scotland No. 108419.
Standard Life Investments companies: Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated in the UK by the Financial Conduct Authority.
Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and StandardLife Investments.
For professional investors only, in Switzerland for qualified investors only – not for use by retail investors or advisers.
Issued by Aberdeen Standard Investments Luxembourg S.A. Registered Office: 35a, avenue John F. Kennedy, L-1855 Luxembourg. Authorised and regulated by the Commission de Surveillance du Secteur Financier in Luxembourg. Authorised and regulated by theCommission de Surveillance du Secteur Financier in Luxembourg.
Distribution in the European Economic Area: As at the date of this document, the Fund has been notified, registered or approved (as thecase may be and howsoever described) in accordance with the local law/regulations implementing the Alternative Investment Fund Managers Directive (Directive (2011/61/EU)) (the “AIFMD”) for marketing to professional investors into the following member states of the EEA (each a “Member State”): Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and the United Kingdom. In relation to other Member States, this document may only be distributed and Shares may only be offered or placed in a Member State: (i) at the investor’s own initiative; or (ii) to the extent that this document may otherwise be lawfully distributed and the Shares may lawfully be offered or placed in that Member State.
This document is for information purposes and should not be considered as an offer or solicitation to deal in any of the investments mentioned herein.
Distribution in Switzerland: Pursuant to Article 120 para. 4 of the Swiss Federal Act on Collective Investment Schemes of 23 June 2006,as amended (“CISA”), the Shares may only be offered and the Confidential Placement Memorandum may only be distributed in or from Switzerland to Qualified Investors as defined in the CISA and its implementing ordinance. Further, the Shares may be sold under the exemptions of Article 3 para. 2 CISA.
The representative and paying agent in Switzerland is Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, CH-8021 Zurich.The Confidential Placement Memorandum, the Partnership Agreement, as well as the annual reports may be obtained free of charge from the representative.
Issued in Switzerland by Aberdeen Standard Investments (Switzerland) AG. Registered in Switzerland under company no. CHE-114.943.983. Registered Office: Schweizergasse 14, 8001 Zurich. Aberdeen Standard Investments (Switzerland) AG holds a distribution license from FINMA.
This document is not intended for distribution or use by anyone in any jurisdiction where such distribution, publication or use would be prohibited. The information, opinions or data in this document do not constitute investment, legal, tax or other advice and should not to be relied upon in making an investment or other decision.
Property is a relatively illiquid asset class, the valuation of which is a matter of opinion. There is no recognised market for property and there can be delays in realising the value of assets. The capital value of investments and the income from them can go down as well as up, and an investor may get back less than the amount originally invested. Past performance is not an indication of future results. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Professional advice should be obtained before making any investment decision.